Application of RFID Technology to Curb Diversion of Transit Goods in Kenya

In this paper, an RFID based Electronic Cargo Tracking System (ECTS) for tracking transit container goods in Kenya is discussed. The ECTS system was designed to address the problem of diversion and smuggling of transit goods destined for neighboring countries in East Africa into the Kenyan market. These goods are imported through the port of Mombasa and transported by road or railway through Kenya to exit stations at the border. However, some of these goods are falsely declared as transit with aims of dumping to the local market so as to evade payment of duties and taxes. A research was done through interviews with customs officials, port operators, customs brokers and transporters, in order to identify the diversion methods, associated occurrence risk, weakness exploited and the impact of violations. Weak security feature inherent in manual container seals were identified to be the most vulnerable components exploited. This information was then used to design an RFID based solution to replace the manual seals for tracking the containers. The paper discusses the design, implementation and pilot test results. Also discussed are the benefits of the solution and its limitations. Results from the pilot test have demonstrated the effectiveness of the solution in curbing diversion, in facilitating trade between Kenya and her neighbors and shortening of turn-around time of transit trucks.